US independent oil and gas firm PetroTel has announced plans to make substantial investments in Oman’s oil, Oman Daily Observer reported.
PetroTel will be investing in its concessions in Blocks 17 and 40 offshore Oman’s Musandam peninsula, and Blocks 39 and 67 onshore Oman in Dhofar Governorate.
“We plan to invest quite a large sum of money [in our Oman operations]. It will run into the hundreds of millions of dollars, and potentially even the billions of dollars once [oil and gas] start flowing,” Dr Anil Chopra, Chairman, said.
PetroTel is the sole operator of the four concessions and will also be the sole investor in exploration and production with 100% interest.
“We are taking all of the risk. We are investing all the capital in Oman, and once we start producing we will hopefully see the rewards,” Chopra said.
Last week Chopra presented at the Offshore Development Oman Conference the first ever event on the Sultanate’s unexplored offshore potential.
Speaking to the Observer, the oil industry veteran predicted that exploration interest offshore Oman would burgeon over time.
“Onshore [exploration] was easy in Oman, and that’s why everyone was focused there. Offshore is a little more difficult, but in the coming years, offshore exploration will be equally important for the country,” he said.
The Texas based company established presence in Oman’s oil and gas sector in 2009, when it signed an Exploration & Production Sharing Agreement (EPSA) with the Ministry of Oil and Gas for Block 17 offshore Musandam.
Three more concessions were added over the next few years, making PetroTel one of the main contractor in the country’s hydrocarbon exploration arena.
All 4 blocks, in each of which PetroTel has a 100% interest, are in various stages of exploration.
Earlier this summer, the company completed a major seismic survey in Block 40, which Chopra said yielded “some very good data” in the Strait of Hormuz, Sea of Oman and the Arabian Gulf.
According to the hydrocarbon expert seismic acquisition in the congested waters of the Strait of Hormuz was far from simple.
“It was quite challenging because of the volume of shipping traffic in the gulf, which is the busiest in the world. While the ships are sailing at almost 40 knots, our seismic vessel was doing only around 4 knots. Still we were able to get some very good data, which is now being processed.”
Activities planned in the adjoining Block 17 include drilling of the second and third well in the first quarter of 2015.
Onshore acreage acquired under a joint EPSA last year is the subject of environmental studies. Chopra revealed that the two blocks are likely to hold a mix of conventional and unconventional hydrocarbons.
“One of the blocks is more conventional, while the other may have unconventional hydrocarbons like shale oil and gas. We are trying to bring [shale] technology to Oman to try to produce that oil.
“Part of the block has heavy oil, while part holds light oil. Partly is also is gas, and partly shale oil. So all of the elements are there,” Chopra said.
